Despite tariffs and a cooling job market, U.S. companies are reporting stronger-than-expected earnings. S&P 500 profits rose about 12% in Q2, well above forecasts, with tech giants like Meta and Microsoft driving two-thirds of gains. “Businesses have come out of this whole thing looking better,” said Sonu Varghese of Carson Group. AI-related demand is boosting firms from Nvidia to Owens Corning, while sectors like real estate and packaging lag. United Airlines CEO Scott Kirby noted demand has rebounded as policy uncertainty eases. Still, investors warn valuations look stretched, with the S&P trading at 22.5 times forward earnings.
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